opinion parliamentary committee draft, 19 March 2026
On the proposal for a regulation of the European Parliament and of the Council on amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures
Document INTA-PA-786706 · (COM(2025)0989 – C100352/2025 – 2025/0419(COD))
Committee on International Trade · Rapporteur: Lynn Boylan
AI:In short
The Committee on International Trade's draft opinion responds to the Commission's proposal to extend the Carbon Border Adjustment Mechanism (CBAM) to downstream goods and add anti-circumvention measures. The rapporteur welcomes parts of the proposal but proposes amendments to support developing trade partners, exempt Least Developed Countries (LDCs) from CBAM financial obligations while keeping reporting duties, and direct at least 25% of CBAM revenues to international climate finance. The draft opinion deletes Article 27a, which would let the Commission remove goods from CBAM scope in serious and unforeseen circumstances, calling it legally unsound and a risk to predictability. It adds new articles on technical assistance, CBAM diplomacy, an impact report on developing countries, technology transfer, and support for international climate action.
Position. The rapporteur welcomes parts of the Commission proposal but proposes amendments to support developing countries, exempt LDCs from financial obligations, direct 25% of CBAM revenues to climate finance, and delete Article 27a as legally unsound and a risk to predictability.
Key points
- The rapporteur welcomes the Commission proposal's elements that close loopholes and address practical issues while respecting the CBAM Regulation's logic.
- The Commission should provide technical assistance to third countries, particularly lower-middle-income countries (LMICs) and least developed countries (LDCs), on monitoring, reporting and verification (MRV), emissions accounting and carbon pricing.
- LDCs would be exempt from CBAM financial obligations under Article 22 but remain subject to reporting requirements under Article 10; simplified reporting would apply to LDCs and small and medium enterprises in LMICs.
- The Commission should regularly report on CBAM's impacts on developing countries' economies, their ability to comply, and its contribution to industrial decarbonisation and climate policies.
- The Commission should direct an amount equivalent to at least 25% of CBAM revenues towards additional international climate finance, separate from existing commitments.
- The Commission should promote technology transfer of low-emission technologies, including through WTO rule adaptation and partnerships between EU and developing-country producers.
- Article 27a is deleted: the rapporteur calls it legally unsound and politically untenable, saying it would undermine CBAM, expose the EU to external pressure and pose financial risk through retroactive application.
- The Commission should engage with third countries and multilateral fora on carbon pricing and decarbonisation, and trade agreements should not exempt or reduce CBAM obligations or allow rebalancing measures.
- The Commission should consider dual carbon pricing schemes, where exports covered by CBAM face a carbon export tax in addition to the carbon price paid in that country.
- Recognition of third countries' electricity market coupling should be subject to human rights and sustainability criteria, put forward by a Memorandum of Understanding with the Commission.
- The annual assessment of the mass-based threshold in 2027 should also cover downstream goods, and the Commission should monitor impacts on LMICs and LDCs, including their decarbonisation progress and export effects.
- The scope of CBAM is an essential element and should not be amended by delegated act; the phase-in of CBAM must remain aligned with the phase-out of free allocation under the EU ETS.
Who is affected
- Least developed countries: exempt from CBAM financial obligations but must still report emissions.
- Lower-middle-income countries and their small and medium enterprises: simplified reporting procedures and technical assistance.
- EU trading partners: clearer rules, carbon pricing dialogue, and no exemptions in trade agreements.
- The north of Ireland: clarity sought on CBAM application and ETS linking via a Memorandum of Understanding.
- EU industry and importers: extended CBAM scope to downstream goods and anti-circumvention measures.
Figures and deadlines
- At least 25% of CBAM revenues to be directed to additional international climate finance.
- Annual assessment in 2027 of the mass-based threshold, covering downstream goods.
- Impact Report on developing countries due by 1 January 2028 and every two years thereafter.
- Single mass-based threshold must not exceed 1% of emissions embedded in imported goods and processed products.
- EU-Britain summit in July to advance linking of respective ETSs.
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Short justification 188 paragraphs
The rapporteur welcomes many aspects of the Commission’s proposal and agrees with the elements that close loopholes and address practical issues while respecting the logic of the underlying CBAM Regulation. It is important to focus on anti-circumvention in this early phase of the CBAM, to ensure that it starts in the best possible circumstances.
In this opinion, the rapporteur would like to focus on the international perception of the CBAM and the need to support our trade partners throughout its implementation. The committee has regularly heard concerns from partner countries who perceive the CBAM as administratively challenging, a barrier to trade, unilateral action by the EU and, in some cases, a protectionist measure presented as a climate policy. The Commission has been working to improve acceptance of the CBAM globally, but this work is not yet finished. The rapporteur proposes several measures that the Union can take to improve both the perception and the implementation of the CBAM internationally.
Firstly, at a very practical level, the Commission can provide technical assistance to third countries, particularly lower-middle-income countries (LMICs) and least developed countries (LDCs), to assist with MRV, emissions accounting and the development of carbon pricing policies.
Secondly, the rapporteur proposes several measures to better support LMICs and LDCs. In order to adequately understand the global impact of the CBAM, the Commission should regularly report on the impacts of CBAM on the economies of developing countries, their ability to comply with the regulation, and its contribution to industrial decarbonisation and the development of climate policies in those countries. Additionally, LDCs could be exempted from the financial obligations of the CBAM, while remaining subject to its reporting requirements in order to avoid circumvention. The Commission should also consider simplified procedures to apply to SMEs in LMICs and LDCs.
Thirdly, the sincerity of the CBAM as a genuine climate policy should be further demonstrated through the Union’s proactive and constructive engagement with international organisations and multilateral fora. The optics of this type of climate diplomacy are crucial at a time when the international order is being increasingly subjected to national interests. The Union must show its commitment to multilateralism and use these fora to engage with partner countries on issues of carbon pricing and industrial decarbonisation.
In addition, the Union must increase its support for decarbonisation in partner countries more broadly. In line with the European Parliament’s original position on the CBAM Regulation, the rapporteur proposes that the Commission direct an amount equivalent to at least 25% of the CBAM revenues towards additional international climate finance. She notes the recent proposal on the Temporary Decarbonisation Fund and strongly believes that an equivalent level of political will is needed to identify funding sources for additional international climate finance. In addition, the Commission should promote technology transfer of low-emission technologies, including through adaptation of WTO rules and the promotion of partnerships between EU producers and those in developing countries.
Furthermore, the environmental integrity of the CBAM is paramount, as is the need to provide clear, stable rules for our trading partners. Article 27a is an erroneous addition, both legally unsound and politically untenable, that risks completely undermining the CBAM. From an international trade perspective, using Article 27a to respond to short-term political crises will send a signal to trade partners that the CBAM is a protectionist measure rather than a robust climate policy. It also leaves the EU susceptible to external pressure and coercive practices. The retroactive application of Article 27a would also present a financial risk to the Union.
Lastly, the rapporteur would also like to highlight the unique situation of the north of Ireland in relation to the CBAM. As Ireland has a Single Electricity Market, the north of Ireland still falls under the EU ETS for power generation, but not for industrial processes. Uncertainty remains about the exact application of CBAM between the north of Ireland and the EU, and between Ireland and Britain, largely due to unclear and sometimes contradictory messaging from the British government. The Commission's proposal offers clarity around the potential for a Memorandum of Understanding to address these issues. Now both sides must keep their commitment to advance the linking of their respective ETSs by the next EU-Britain summit in July.
AMENDMENTS
The Committee on International Trade submits the following to the Committee on the Environment, Climate and Food Safety, as the committee responsible:
Amendment 1
Proposal for a regulation
Read the rest (176 paragraphs)
Recital 1 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (1a) Third countries require stability and predictability in respect of CBAM and any attempts to dilute or reduce the ambition of CBAM will have negative impacts on the Union's trade partners; |
Or. en
Amendment 2
Proposal for a regulation
Recital 3
| Text proposed by the Commission | Amendment |
|---|---|
| (3) As the CBAM aims to create incentives for the reduction of emissions by operators in third countries, the Union is committed to working with and supporting low and middle-income third countries towards the decarbonisation of their manufacturing industries as part of the external dimension of the European Green Deal5 and in line with the Paris Agreement6 . The Union should continue to support those countries through the Union budget, especially LDCs, in order to contribute to ensuring their adaptation to the obligations under this Regulation. The Union should continue to support climate mitigation and adaptation actions in these countries, including in their efforts towards the decarbonisation and transformation of their industries within the ceiling of the multi-annual financial framework and the financial support provided by the Union to international climate finance. This is further reinforced in the EU global climate and energy vision7 , which indicates that the EU will engage proactively with partners to ensure better coherence between internal and external EU policies. While the CBAM gradually enters into application, the Union intends to strengthen partnerships and support broader climate mitigation efforts, including by providing financial support to countries’ decarbonisation efforts. | (3) As the CBAM aims to create incentives for the reduction of emissions by operators in third countries, the Union is committed to working with and supporting developing countries, in particular Lower Middle-Income Countries (LMICs) and Least Developed Countries (LDCs) towards the decarbonisation of their manufacturing industries as part of the external dimension of the European Green Deal5 and in line with the Paris Agreement, in particular Article 2.26. The Union should continue to support those countries through dedicated financial mechanisms within the Union budget, and relevant international climate finance instruments, especially LMICs and LDCs, in order to contribute to ensuring their adaptation to the obligations under this Regulation. The Union should also facilitate the transfer of low-emission technologies, as well as capacity-building programmes and technical assistance, including support for monitoring, reporting and verification systems and industrial decarbonisation strategies. The Union should continue to support climate mitigation and adaptation actions in these countries, including in their efforts towards the decarbonisation and transformation of their industries within the ceiling of the multi-annual financial framework and the financial support provided by the Union to international climate finance. To facilitate this, the equivalent of at least 25% of the revenues generated from the sale of CBAM certificates each year should be provided in the form of climate finance to developing countries, which should be additional to existing climate finance commitments. This is further reinforced in the EU global climate and energy vision7, which indicates that the EU will engage proactively with partners to ensure better coherence between internal and external EU policies. In implementing this Regulation, the Union should therefore ensure that the CBAM contributes not only to preventing carbon leakage but also to supporting a fair and inclusive global transition to climate neutrality. While the CBAM gradually enters into application, the Union intends to strengthen partnerships and multilateral fora, and support broader climate mitigation efforts, including by providing financial support to countries’ decarbonisation efforts. |
| 5 Communication: The European Green Deal, COM/2019/640 final. | 5 Communication: The European Green Deal, COM/2019/640 final. |
| 6 OJ L 282, 19.10.2016, p. 4. | 6 OJ L 282, 19.10.2016, p. 4. |
| 7 Joint Communication: EU global climate and energy vision: securing Europe's competitive role in world markets and accelerating the clean transition, JOIN(2025) 25 final. | 7 Joint Communication: EU global climate and energy vision: securing Europe's competitive role in world markets and accelerating the clean transition, JOIN(2025) 25 final. |
Or. en
Amendment 3
Proposal for a regulation
Recital 3 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (3a) The Union’s engagement with third countries, international organisations and multilateral fora is essential to promote the objectives of this Regulation, address concerns of partner countries, and support policies for industrial decarbonisation, including carbon pricing. The Commission should engage actively and constructively with partner countries, and support Member States in doing so, in order to facilitate the effective implementation of the CBAM. Cooperation frameworks, including trade agreements, can provide avenues for dialogue on CBAM-related matters. However, such agreements should not include provisions that exempt or reduce the obligations of authorised CBAM declarants under this Regulation, nor contain language that could give rise to rebalancing measures or similar trade remedies. |
Or. en
Amendment 4
Proposal for a regulation
Recital 3 b (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (3b) In order to enhance the fairness, credibility and international acceptability of the CBAM, in particular vis-à-vis developing countries, it is appropriate that it goes hand in hand with additional international climate finance. As CBAM can have implications for trade relations with third countries, in particular those with lower levels of development, the provision of such support is necessary to facilitate its acceptance, reduce the risk of disputes, and support cooperative approaches to decarbonisation. In this regard, the Union has committed, in the context of the new collective quantified goal on climate finance (NCQG) agreed at COP29, to scale up support for developing countries, which should be regarded as a minimum baseline for such contributions. Furthermore, while the proposal establishing a Temporary Decarbonisation Fund provides for the allocation of a share of CBAM revenues to support Union industry at risk of carbon leakage, ensuring a corresponding level of support to developing countries would contribute to a balanced and equitable approach and help address concerns that CBAM could otherwise result in an asymmetric redistribution of resources. Such an approach would reinforce the environmental integrity of CBAM, strengthen its compatibility with the Union’s trade policy objectives, and support constructive engagement with partner countries. |
Or. en
Amendment 5
Proposal for a regulation
Recital 3 c (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (3c) Limited access to low-emission technologies, technical expertise and innovation capacity remains one of the principal barriers preventing developing countries, in particular least developed countries and lower- and middle-income countries, from reducing greenhouse gas emissions from their industrial sectors. Barriers to technology transfer can limit partner countries’ ability to reduce the carbon intensity of their production and to effectively comply with the requirements of this Regulation. Bridging this technology gap is therefore essential to enable those countries to decarbonise their industries and to contribute to global emissions reductions. The Commission should therefore accompany the CBAM with measures that facilitate access to low-carbon technologies in developing countries. Such measures may include strengthening international cooperation on technology transfer, supporting partnerships between industrial actors in the Union and in partner countries, and promoting changes to the World Trade Organization rules aimed at enabling greater policy space for the deployment of low-emission technologies. |
Or. en
Amendment 6
Proposal for a regulation
Recital 7
| Text proposed by the Commission | Amendment |
|---|---|
| (7) Upon the incorporation of Regulation (EU) 2023/956 in the EEA Agreement, the EFTA States applying the CBAM should not be considered third countries for the purposes of this Regulation and should be deleted from its Annex III. A common CBAM area would be created where the threshold pursuant to Article 2a of Regulation (EU) 2023/956 would become jointly applicable to importation into the Union and the customs territories of the EFTA States that apply CBAM. | deleted |
Or. en
Justification
This is a direct repeat of recital 4.
Amendment 7
Proposal for a regulation
Recital 9
| Text proposed by the Commission | Amendment |
|---|---|
| (9) Due recognition of the progress made by the relevant third countries towards market coupling of the electricity systems ensures that any time-limited exemptions as foreseen in this Regulation fully align with the strategic objectives of the Union and those third countries’ specific achievements. The efficient use of the existing electricity infrastructure and the integration of electricity markets of third countries into the internal electricity market of the Union is essential to reduce costs for both Member States and the relevant third countries, as well as to ensure security of supply. Such recognition should be put forward by means of a Memorandum of Understanding between the Commission and the third countries that have fully transposed the relevant electricity market acquis, as verified by the Commission. The Memorandum of Understanding should set the timeline for the application of the exemption foreseen in Regulation (EU) 2023/956, while considering adherence to relevant market rules and transmission system operator (TSO) institutions in line with Regulation (EU) 2019/943 of the European Parliament and of the Council8 and Commission Regulation (EU) 2015/12229 , and the progress made by the relevant countries on carbon pricing instruments equivalent to the EU ETS insofar as electricity generation is concerned. | (9) Due recognition of the progress made by the relevant third countries towards market coupling of the electricity systems ensures that any time-limited exemptions as foreseen in this Regulation fully align with the strategic objectives of the Union and those third countries’ specific achievements. The efficient use of the existing electricity infrastructure and the integration of electricity markets of third countries into the internal electricity market of the Union is essential to reduce costs for both Member States and the relevant third countries, as well as to ensure security of supply. Such recognition should, subject to human rights and sustainability criteria, be put forward by means of a Memorandum of Understanding between the Commission and the third countries that have fully transposed the relevant electricity market acquis, as verified by the Commission. The Memorandum of Understanding should set the timeline for the application of the exemption foreseen in Regulation (EU) 2023/956, while considering adherence to relevant market rules and transmission system operator (TSO) institutions in line with Regulation (EU) 2019/943 of the European Parliament and of the Council8 and Commission Regulation (EU) 2015/12229 , and the progress made by the relevant countries on carbon pricing instruments equivalent to the EU ETS insofar as electricity generation is concerned. |
| 8 Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) (OJ L 158, 14.6.2019, pp. 54–124, ELI: http://data.europa.eu/eli/reg/2019/943/oj). | 8 Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) (OJ L 158, 14.6.2019, pp. 54–124, ELI: http://data.europa.eu/eli/reg/2019/943/oj). |
| 9 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, pp. 24–72, ELI: http://data.europa.eu/eli/reg/2015/1222/oj). | 9 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, pp. 24–72, ELI: http://data.europa.eu/eli/reg/2015/1222/oj). |
Or. en
Amendment 8
Proposal for a regulation
Recital 10
| Text proposed by the Commission | Amendment |
|---|---|
| (10) To ensure that the single mass-based threshold does not exceed 1% of the emissions embedded in the imported goods and processed products following the extension of Regulation (EU) 2023/956 to downstream products, the annual assessment in the year 2027 of the threshold should be carried out on the basis of import data covering the downstream goods covered under this extension. | (10) To ensure that the single mass-based threshold does not exceed 1% of the emissions embedded in the imported goods and processed products following the extension of Regulation (EU) 2023/956 to downstream products, the annual assessment in the year 2027 of the threshold should also be carried out on the basis of import data covering the downstream goods covered under this extension. |
Or. en
Justification
Clarification to better align this recital with the wording that amends Article 2a (3). The assessment of the threshold should be carried out on the basis of data covering downstream as well as primary goods.
Amendment 9
Proposal for a regulation
Recital 11
| Text proposed by the Commission | Amendment |
|---|---|
| (11) The CBAM seeks to address the risk of carbon leakage by ensuring that products, irrespective of whether they are imported or produced in the Union, are subject to an equivalent carbon price. However, as long as a significant number of the Union’s international partners have policy approaches that do not achieve the same level of climate ambition, there is a risk of carbon leakage, resulting in overall emissions being higher than what they would be in the absence of carbon leakage. | (11) The CBAM seeks to address the risk of carbon leakage by ensuring that products, irrespective of whether they are imported or produced in the Union, are subject to an equivalent carbon price. However, as long as a significant number of the Union’s international partners have policy approaches that do not achieve the same level of climate ambition, there is a risk of carbon leakage, resulting in overall emissions being higher than what they would be in the absence of carbon leakage. This is without prejudice to the fact that countries differ in their respective responsibilities and capacities to address climate change. |
Or. en
Amendment 10
Proposal for a regulation
Recital 18 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (18a) Least Developed Countries (LDCs) have contributed minimally to global greenhouse gas emissions and lack the financial, technical and institutional capacity required to comply with complex monitoring, reporting and verification obligations. It is therefore appropriate that the CBAM reflects countries’ development levels and decarbonisation capacities through differentiated obligations, in line with the principle of Common but Differentiated Responsibilities and Respective Capabilities, while still retaining reliable reporting information. |
Or. en
Amendment 11
Proposal for a regulation
Recital 21
| Text proposed by the Commission | Amendment |
|---|---|
| (21) To facilitate the application of Regulation (EU) 2023/956, the Union may in the context of the Implementing Regulation for accounting the carbon price paid abroad, consider the carbon credits under Article 6 of the Paris Agreement. | (21) To further the objectives of Regulation (EU) 2023/956, the Union should, in the context of the Implementing Regulation on carbon price paid in a third country, consider dual carbon pricing schemes, whereby exports covered by CBAM are subjected to a carbon export tax in addition to the carbon price paid in that country, up to the difference between the carbon price paid in that country and the EU ETS carbon price, to be a ‘carbon price effectively paid’ within the meaning of Article 9(1) of that Regulation. This would improve political and public acceptance of the CBAM among trading partners and incentivise the adoption of carbon pricing schemes in third countries. The Commission could, in its engagements with partner countries, encourage the use of the revenues from the carbon export tax for the decarbonisation of industrial processes in that country, thereby advancing global industrial decarbonisation in sectors covered by CBAM. |
Or. en
Amendment 12
Proposal for a regulation
Recital 36 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (36a) Given that the CBAM is a global instrument, with consequences potentially for all trading partners, the Commission should regularly monitor the impacts that implementation of CBAM specifically has on developing countries, particularly LMICs and LDCs in order to evaluate the efficiency of th Regulation and avoid any unintended impacts. This is a core part of responsible CBAM implementation, structured engagement with third countries, and ensuring the future-proofing of the CBAM as an effective climate instrument. A thorough and dedicated impact report is necessary for developing countries in particular, due to the capacity constraints of many developing countries and the historic responsibility of developed countries. It is also noteworthy that different concerns have been raised by many developing countries in relation to the implementation of CBAM, and these can develop over time and must be studied thoroughly. |
Or. en
Amendment 13
Proposal for a regulation
Recital 37
| Text proposed by the Commission | Amendment |
|---|---|
| (37) To enable a swift reaction in the case of serious and unforeseeable consequences from the inclusion of a good in the scope of the CBAM, leading to severe harm to the Union internal market, the Commission should be empowered to adopt delegated acts to remove a good from the scope of Regulation (EU) 2023/956. | deleted |
Or. en
Amendment 14
Proposal for a regulation
Recital 39
| Text proposed by the Commission | Amendment |
|---|---|
| (39) With the progressive phase-out of transitional free allocation of allowances under Directive 2003/87/EC of the European Parliament and of the Council11, which establishes a system for greenhouse gas emission allowance trading within the Union (‘EU ETS’), and the progressive phase-in of the CBAM, the risk of carbon leakage will likely shift from the upstream sectors currently covered by the CBAM to downstream products. To preserve the effectiveness of the objectives of the CBAM, it is therefore necessary to extend the scope of Regulation (EU) 2023/956 to products further down the value chain. | (39) With the progressive phase-out of transitional free allocation of allowances under Directive 2003/87/EC of the European Parliament and of the Council11, which establishes a system for greenhouse gas emission allowance trading within the Union (‘EU ETS’), and the parallel progressive phase-in of the CBAM, in accordance with Article 10a (1a), second subparagraph, of Directive 2003/87/EU, the risk of carbon leakage will likely shift from the upstream sectors currently covered by the CBAM to downstream products. To preserve the effectiveness of the objectives of the CBAM, it is therefore necessary to extend the scope of Regulation (EU) 2023/956 to products further down the value chain. |
| 11 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj). | 11 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj). |
Or. en
Justification
In order to ensure WTO compatibility, the phase-in of CBAM must remain aligned with the phase-out of free allocation under the EU ETS.
Amendment 15
Proposal for a regulation
Recital 50
| Text proposed by the Commission | Amendment |
|---|---|
| (50) In order to amend certain non-essential elements of Regulation (EU) 2023/956, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of removing goods from the scope of Annex I, where necessary, due to severe harm to the Union internal market caused by serious and unforeseeable circumstances, and until these serious and unforeseeable circumstances have passed. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. | deleted |
Or. en
Justification
The scope of the CBAM instrument should not be considered a non-essential element, and so should not be amended by delegated act.
Amendment 16
Proposal for a regulation
Article 1 – paragraph 1 – point 2 a (new)
Regulation (EU) 2023/956
Article 2a a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (2a) the following article is inserted | |
| ‘Article 2aa | |
| Special arrangements for LDCs and LMICs | |
| 1. Imports of goods originating in countries classified as Least Developed Countries (LDCs) by the United Nations shall be exempt from the financial obligations established under Article 22 of this Regulation, in line with the established principle of special and differential treatment within international trade law. | |
| 2. Operators located in LDCs shall remain subject to the reporting requirements under Article 10 of this Regulation in order to facilitate the gradual development of monitoring, reporting and verification capacities and prevent circumvention. | |
| 3. The Commission shall adopt implementing acts specifying simplified reporting requirements applicable to LDCs and to operators which are small and medium enterprises established in LMICs. These requirements shall facilitate the market participation of these operators without undermining the climate integrity of the CBAM and considering the need for CBAM reporting to remain reliable. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).’ |
Or. en
Amendment 17
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)
Regulation (EU) 2023/956
Article 3 – paragraph 1 – point 35 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (3a) in Article 3, the following point is added: | |
| '(35a) ‘lower-middle-income countries’ mean countries listed as lower-middle income according to the World Bank’s income classifications;1a | |
| 1a Comparison of country classifications including LDCs and LMICs: https://www.oecd.org/en/topics/sub-issues/oda-eligibility-and-conditions/dac-list-of-oda-recipients.html' |
Or. en
Amendment 18
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b – point 1
Regulation (EU) 2023/956
Article 9 – paragraph 5 – subparagraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| The Commission is empowered to adopt implementing acts, based on the principle of equivalence, concerning the conversion of the yearly average carbon price effectively paid in accordance with paragraph 1 of this Article and of the yearly default carbon prices determined in accordance with paragraph 4 of this Article into a corresponding reduction of the number of CBAM certificates to be surrendered.Those acts shall also govern the conversion of the carbon price expressed in foreign currency into euro at the yearly average exchange rate, the evidence required of the actual payment of the carbon price, examples of any relevant rebate or other form of compensation referred to in paragraph 1 of this Article, the qualifications of the independent person referred to in paragraph 2 of this Article and the conditions to ascertain that person’s qualifications and independence. The qualifications mentioned in the previous paragraph shall include the granting of accreditation by a national accreditation body, the specification of the certification procedures, and the appropriate exchanges of information between the independent person, national accreditation bodies, the European Commission and competent authorities. The Commission is also empowered to regulate the conditions for deducting carbon credits under Article 6 of the Paris Agreement. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). | The Commission is empowered to adopt implementing acts, based on the principle of equivalence, concerning the conversion of the yearly average carbon price effectively paid in accordance with paragraph 1 of this Article and of the yearly default carbon prices determined in accordance with paragraph 4 of this Article into a corresponding reduction of the number of CBAM certificates to be surrendered.Those acts shall also govern the conversion of the carbon price expressed in foreign currency into euro at the yearly average exchange rate, the evidence required of the actual payment of the carbon price, examples of any relevant rebate or other form of compensation referred to in paragraph 1 of this Article, the qualifications of the independent person referred to in paragraph 2 of this Article and the conditions to ascertain that person’s qualifications and independence. The qualifications mentioned in the previous paragraph shall include the granting of accreditation by a national accreditation body, the specification of the certification procedures, and the appropriate exchanges of information between the independent person, national accreditation bodies, the European Commission and competent authorities. The Commission is also empowered to regulate the conditions that apply where a third country has chosen to enact a dual carbon pricing scheme, whereby exports covered by CBAM are subjected to a carbon export tax additional to the carbon price paid in that country, up to the level of the difference between the carbon price paid in that country and the EU ETS carbon price. The carbon export tax element of such dual carbon pricing schemes shall, in addition to the carbon price paid in that country, be considered a ‘carbon price effectively paid’ within the meaning of Article 9(1). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). |
Or. en
Amendment 19
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b – point 2
Regulation (EU) 2023/956
Article 9 – paragraph 5 – subparagraph 2
| Text proposed by the Commission | Amendment |
|---|---|
| (2) the following subparagraph is added: | deleted |
| The qualifications referred to in the first subparagraph shall include the granting of accreditation by a national accreditation body, the specification of the certification procedures and the appropriate exchanges of information between the independent person, national accreditation bodies, the Commission and competent authorities.; |
Or. en
Justification
This exact text is already included in the amendment to the first subparagraph.
Amendment 20
Proposal for a regulation
Article 1 – paragraph 1 – point 8 a (new)
Regulation (EU) 2023/956
Article 10 a a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (8a) the following article is inserted: | |
| ‘Article 10aa | |
| Technical Assistance | |
| 1. The Union shall promote cooperation with developing countries, in particular Low- and Middle-Income Countries (LMICs) and Least Developed Countries (LDCs), with the objective of facilitating the effective implementation of this Regulation and supporting the decarbonisation of production processes within those countries in the sectors covered by the Carbon Border Adjustment Mechanism. | |
| 2. The Commission shall establish and manage programmes of technical assistance aimed at supporting competent authorities, producers and exporters in developing countries in relation to: | |
| (a) the monitoring, reporting and verification (MRV) of embedded emissions in goods covered by this Regulation; | |
| (b) the development and implementation of reliable emissions accounting systems consistent with Union methodologies; | |
| (c) the collection, management and transmission of emissions data required for CBAM reporting; and | |
| (d) the development of regulatory and institutional capacity relevant to carbon pricing or equivalent climate policy instruments. | |
| 3. Technical assistance may include, inter alia: | |
| (a) training programmes and capacity-building initiatives for public authorities and private operators, including through the Technical Assistance and Information Exchange (TAIEX) tool; | |
| (b) the provision of methodological guidance, digital tools and technical documentation necessary for the calculation and reporting of embedded emissions; | |
| (c) institutional cooperation and exchange of best practices with competent authorities in third countries; and | |
| (d) targeted support for the establishment or strengthening of domestic emissions monitoring and verification systems. | |
| 4. In the allocation of technical assistance under this Article, priority shall be given to Least Developed Countries and Lower-Income Developing Countries whose exporters are affected by the implementation of this Regulation and who face capacity constraints in complying with its requirements. | |
| 5. The Commission shall ensure that assistance provided under this Article is coordinated, where appropriate, with relevant Union external action instruments, including development cooperation programmes, climate finance mechanisms, and international partnerships supporting industrial decarbonisation. | |
| 6. Without prejudice to the principle of budgetary universality, the Commission may make use of resources available under relevant Union programmes and may allocate a share of revenues generated by this Regulation, where provided for under Union law, to finance activities under this Article. | |
| 7. The Commission shall regularly monitor the technical assistance provided to least developed countries in order to evaluate its effectiveness in contributing to the decarbonisation process in those countries and shall report every two years to the European Parliament and the Council on the implementation of this Article, including the scope of assistance provided, beneficiary countries, and the contribution of such assistance to improving compliance with this Regulation and supporting decarbonisation in partner countries.’ |
Or. en
Amendment 21
Proposal for a regulation
Article 1 – paragraph 1 – point 17
Regulation (EU) 2023/956
Article 27a
| Text proposed by the Commission | Amendment |
|---|---|
| (17) the following Article 27a is inserted: | deleted |
| ‘Article 27a | |
| Serious and unforeseen circumstances | |
| The Commission shall monitor the situation at Union level with a view to monitoring the impact of the CBAM on the Union internal market. Where the Commission, taking into account the relevant evidence, considers that the inclusion of a good in Annex I causes severe harm to the Union internal market due to serious and unforeseen circumstances related to the impact on the prices of goods, it is empowered to adopt delegated acts in accordance with Article 28 to remove this good from Annex I until those serious and unforeseeable circumstances have passed.;’ |
Or. en
Justification
The introduction of Article 27a removes all predictability for trade partners and EU industry. It would make the EU susceptible to external pressure and coercive practices, leading to trade imbalances. Trade partners will have to adapt to requirements to then find them removed; this would be particularly burdensome on developing countries. The retroactive application of Article 27a also represents a financial risk to the Union. Furthermore, the scope of CBAM is clearly as essential element of the mechanism and so should not be amended by delegated act.
Amendment 22
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Regulation (EU) 2023/956
Article 30 – paragraph 6 – subparagraph 2 – point a – point vii
| Text proposed by the Commission | Amendment |
|---|---|
| (vii) LDCs. | (vii) LMICs and LDCs, particularly as regards their progress towards decarbonisation and any negative impacts on their exports. |
Or. en
Amendment 23
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Regulation (EU) 2023/956
Article 30 – paragraph 6 – subparagraph 2 – point b – point ii
| Text proposed by the Commission | Amendment |
|---|---|
| (ii) the scope of this Regulation, including of the possibility to extend the scope of this Regulation to additional goods at risk of carbon leakage; | (ii) the scope of this Regulation, including of the possibility to extend the scope of this Regulation to additional goods at risk of carbon leakage, including additional downstream products; |
Or. en
Amendment 24
Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)
Regulation (EU) 2023/956
Article 30 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (20a) the following article is inserted: | |
| ‘Article 30a | |
| Impact Report on Developing Countries | |
| 1. The Commission shall, by 1 January 2028 and every two years thereafter, prepare and submit to the European Parliament and the Council a comprehensive Impact Report on the economic, environmental and social effects of this Regulation on developing countries (the ‘Impact Report’), with particular attention to low- and middle-income countries (LMICs) and Least Developed Countries (LDCs). The Impact Report shall be made public and it may be deemed to fulfil the Commission’s existing obligation to assess CBAM impacts on LDCs and LMICs under Article 30.6. | |
| 2. The Impact Report shall analyse, using quantitative and qualitative data, at least the following: | |
| (a) trade flows of CBAM-covered goods (imports and re-exports) by country and sector; | |
| (b) the effects of this Regulation on participation of exporter countries in global value chains; | |
| (c) the administrative and financial capacity of affected exporters to comply with the monitoring, reporting and verification requirements under this Regulation; | |
| (d) administration and MRV (monitoring, reporting, verification) burdens on businesses and authorities; | |
| (e) risks of carbon leakage or production shifts in vulnerable sectors; | |
| (f) employment impacts in affected industries; | |
| (g) fiscal effects of CBAM on revenues and on import-dependent economies; | |
| (h) any unintended environmental impacts; | |
| (i) policy developments around carbon pricing and incentives for industrial decarbonisation; | |
| (j) any other relevant trade, climate or development indicators identified during stakeholder consultation. | |
| 3. In preparing the Impact Report, the Commission shall undertake broad consultations with relevant stakeholders in affected countries. The Commission shall invite input from developing countries, LDCs and LMICs through diplomatic channels and existing platforms. A summary of the consultations and main feedback received shall be annexed to the Impact Report. | |
| 4. Where the assessment identifies significant adverse impacts on LDCs or other developing countries, the Commission shall, if appropriate, accompany the review report in Article 30.6 with legislative proposals aimed at mitigating such impacts, which may include, as appropriate: limited transitional relief such as temporary waivers or phased implementation, de minimis thresholds for country-specific exports, extended adjustment periods such as longer phase-in for compliance, or additional capacity-building and financial support for those countries.’ |
Or. en
Amendment 25
Proposal for a regulation
Article 1 – paragraph 1 – point 20 b (new)
Regulation (EU) 2023/956
Chapter X a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (20b) the following chapter is inserted: | |
| Chapter Xa | |
| CBAM's international dimension |
Or. en
Amendment 26
Proposal for a regulation
Article 1 – paragraph 1 – point 20 c (new)
Regulation (EU) 2023/956
Article 35 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (20c) the following article is inserted: | |
| ‘Article 35a | |
| CBAM diplomacy | |
| 1. The Commission shall proactively engage with third countries and international organisations to promote carbon pricing policies, enhance transparency and mutual understanding on the CBAM, and encourage collaborative solutions to technical and policy concerns raised by third countries. | |
| 2. The Commission shall engage constructively with international coalitions and initiatives that seek to advance multilateral action on technology transfer, industrial decarbonisation and carbon pricing. The Commission shall also consider the establishment of an international Carbon Club in order to ensure continuous exchange in good faith with the Union’s trade partners. | |
| 3. The Commission shall endeavour to ensure that any trade or cooperation agreement concluded by the Union does not contain provisions that exempt or reduce the environmental or reporting obligations of imported products covered by this Regulation. In particular, no bilateral, multilateral or plurilateral treaty shall permit partner countries to benefit from lower carbon prices, emissions thresholds, or reporting requirements for goods exported to the Union than those applied under this Regulation. The Commission shall also seek to avoid including provisions in trade or cooperation agreements that may be interpreted as recognising that this Regulation harms partner countries’ exports or that could trigger rebalancing measures or similar trade remedies in response to its implementation. | |
| 4. The Commission shall report every three years to the European Parliament and the Council on its efforts to build international consensus on border carbon measures. This report shall include outcomes of any disputes and recommendations for strengthening global cooperation on carbon pricing and market mechanisms.’ |
Or. en
Amendment 27
Proposal for a regulation
Article 1 – paragraph 1 – point 20 d (new)
Regulation (EU) 2023/956
Article 35 b (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (20d) the following article is inserted | |
| ‘Article 35b | |
| Support for international climate action | |
| In order to ensure the global fairness and international acceptability of the CBAM, particularly in relation to developing countries, the Commission shall ensure the provision of additional climate finance each year to developing countries through Union external financing instruments equivalent to at least 25% of the level of revenues generated by the sale of CBAM certificates in the preceding calendar year. Such support shall be additional to existing international climate finance commitments of the Union and shall not substitute for existing development or climate finance obligations.’ |
Or. en
Amendment 28
Proposal for a regulation
Article 1 – paragraph 1 – point 20 e (new)
Regulation (EU) 2023/956
Article 35 c (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (20e) the following article is inserted | |
| ‘Article 35c | |
| Technology transfer and international decarbonisation partnerships | |
| 1. In order to address limited access to low-emission technologies, technical expertise and innovation faced by LMICs and LDCs, the Commission shall promote access to low-emission technologies and support industrial decarbonisation strategies in developing countries affected by this Regulation. | |
| 2. In particular, the Commission shall support discussions within the World Trade Organization aimed at enabling greater policy space for developing countries to access and deploy low-emission technologies, including through technology transfer and possible adjustments, waivers or interpretations of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the Agreement on Trade-Related Investment Measures (TRIMS). | |
| 3. The Commission shall also facilitate partnerships and industrial cooperation initiatives between Union industries and producers in developing countries aimed at reducing the carbon intensity of industrial production in sectors covered by this Regulation.’ |
Or. en
Annex: declaration of input 4 paragraphs
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in her draft opinion input on matters pertaining to the subject of the file that she received, in the preparation of the draft opinion, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register |
| World Wildlife Fund |
| European Environmental Bureau |
| Bellona |
| Institute for European Environmental Policy |
| Third Generation Environmentalism (E3G) |
| APPLiA – Home Appliance Europe |
| Bruegel |
| Global Strategic Communications Council |
| ODI Global |
| Carbon Market Watch |
| 2. Representatives of public authorities of third countries, including their diplomatic missions and embassies |
The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.